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The future of capital creation on Wall Street begins in the cryptocurrency sphere with Overstock ICO set for Nov. 1

The future of capital creation on Wall Street begins in the cryptocurrency sphere with Overstock ICO set for Nov. 1

For corporations there are three different methods in which they can acquire necessary capital to grow their businesses.  First, if they are a private company they can apply for and implement an Initial Public Offering (IPO).  Second, if they are already a publicly traded company they can dilute their stock by selling shares.  And finally there is the option for a company to sell corporate bonds at an established rate of interest.

But with the rise of the Blockchain, cryptocurrencies, and a new financial paradigm there has now become a fourth method of acquiring capital, and that is through the creation of your own cryptocurrency and selling it to the public through an Initial Coin Offering.

And on Nov. 1, Overstock.com will be doing just that.

Shares of cryptocurrency pioneer Overstock.com climbed more than 5% on Tuesday after the company revealed that it will launch an ICO on Nov. 1 using its proprietary tZERO platform, a strategy that will allow Overstock to raise capital without diluting its float.

As far as we can tell, the Overstock ICO would be the first conducted by a large, publicly traded US company, and could potentially open the door for other corporations to utilize the ICO as an alternative means of raising capital.

The offering will will run through Nov. 15, Overstock said. –¬†Zerohedge

For hundreds of years, equity markets have been the primary platform in which companies have attracted customers and investment through the trading of shares on an exchange.  But with the reality that the Blockchain is taking over nearly every asset trading platform, the future is very well likely to be through tokenization, rather than through the issuance of stocks.

Overstock.com was one of the very first retailers to accept Bitcoin, and their CEO has been a major herald for the cryptocurrency sphere.¬† Thus it should come as no surprise that Overstock would be the first major corporation to jump onto the ICO bandwagon, and play the guinea pig for what should be a cornucopia of ICO’s in 2018.

Kenneth Schortgen Jr is a writer for The Daily Economist, Secretsofthefed.com, Roguemoney.net, and Viral Liberty, and hosts the popular youtube podcast on Mondays, Wednesdays and Fridays. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.


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